Minister of Planning and Budget Calls for Cooperation to Overcome Structural Challenges... Bank of Korea Governor Pledges Policy Recommendations

Minister Park Hongkeun Makes First Visit to the Bank of Korea

Hongkeun Park, Minister of Planning and Budget, and Hyunsong Shin, Governor of the Bank of Korea, shake hands ahead of a meeting on May 14 at the Bank of Korea in Jung-gu, Seoul. 2026.5.14 Photo by Jinhyung Kang

On May 14, Minister of Planning and Budget Hongkeun Park visited the Bank of Korea for the first time since taking office to discuss ways to overcome the structural challenges facing the Korean economy with Hyunsong Shin, Governor of the Bank of Korea. Prior to the meeting, Minister Park told reporters, "I came here with the intention of fostering organic cooperation and communication between the two institutions going forward." In his opening remarks, he said, "While our economy continues to face structural issues, external conditions are fundamentally changing. At such a time, cooperation between the Planning and Budget Ministry, which designs the nation's long-term future strategy in connection with fiscal policy, and the Bank of Korea, which prioritizes macroeconomic stability, is extremely important."

He went on to say, "Both institutions must actively strive to expand the country's future growth potential and overcome structural and complex crises by harmoniously coordinating fiscal and monetary policies. Structural challenges such as the disappearance of local communities, polarization, and the climate crisis can be overcome through organic policy coordination among various policy variables."

Governor Shin responded, "Going forward, the Bank of Korea will operate policies to ensure price and financial stability, while also giving deep consideration to growth potential and offering policy recommendations." He added, "The complex tasks and structural issues facing our economy cannot be resolved by the efforts of a single institution alone. Therefore, we will strive to continuously share our understanding of key economic issues with the government and maintain ongoing cooperation."

Shin Hyun-song, Governor of the Bank of Korea, is speaking during a meeting with Paik Hong-geun, Minister of Strategy and Finance, at the Bank of Korea in Jung-gu, Seoul on May 14, 2026. Photo by Kang Jin-hyung

It is reported that, during their closed-door meeting, the two exchanged views on the current economic situation and policy responses, as well as discussed ways to overcome structural challenges. In particular, they agreed that, although the economy has rebounded significantly thanks to strong exports despite ongoing uncertainty related to the Middle East conflict, high oil prices are increasing inflationary pressures and difficulties persist for vulnerable sectors. As such, they recognized the need to focus policy capabilities on stabilizing prices and supporting vulnerable groups to ensure public well-being.

Minister Park expressed his hope for close collaboration with the Bank of Korea regarding plans to establish a medium- to long-term national development strategy to address five major structural challenges: the AI revolution, demographic changes, the climate crisis, polarization, and the disappearance of local communities. In response, Governor Shin pledged to actively seek ways for the Bank of Korea to contribute, leveraging its research and analysis capabilities.

This meeting marked Minister Park's first visit to the Bank of Korea since his appointment in March, and it was also the first-ever meeting between the heads of the Planning and Budget Ministry and the Bank of Korea. The Planning and Budget Ministry was merged into the Ministry of Strategy and Finance in 2008 but was reestablished earlier this year. Previously, just three days after taking office, Governor Shin met with Yoonchul Koo, Deputy Prime Minister for Economic Affairs and Minister of Economy and Finance, on April 23, where he pledged policy coordination, stating, "In a situation where growth and inflation are in conflict, fiscal and monetary policies must be harmonized."

This content was produced with the assistance of AI translation services.